For anyone in a financial situation where they need to consider bankruptcy as an option for debt
management, one of the first concerns would be have to be cost of filing bankruptcy.
First and foremost in almost every area of study on this topic, it is stressed that filing should be a last resort in any case. It should also be noted that bankruptcy doesn't cover every debt and is not a quick way out of debt.
Once you have established that bankruptcy is your only solution and you are sure you are a candidate, the cost of filing bankruptcy will depend on the individual case, circumstances and the type of bankruptcy you file. There are also several ways to file, which also means there are different amounts when it comes to filing. It really depends on what you decide is right for you.
There are several "Do It Yourself" manuals for filing bankruptcy that you can pick up at book and stationary stores across the country. This may seem like it will lessen the cost of filing bankruptcy but you have to be very careful. You must know exactly what to do and not to do or you could lose valuable assets, property and even rights.
Another avenue to explore is non-lawyer document preparation. Again, this is typically not a good idea, even though it can lower your cost of filing.
One of the best, if not one of the safest routes, would be to get an attorney. You should always get the cost of filing bankruptcy in writing from the attorney before you begin. Remember the attorney's fees are in addition to the filing fee of the court. The "filing fee" is the court-required cost. The current cost of filing bankruptcy if choosing the Chapter 7 (liquidation proceeding) option is $299.The current cost of filing if choosing the Chapter 13 option (reorganization and repayment plan) is $274. (These are the two most common types of individual bankruptcy.)
These fees are to be paid to the clerk of the court when filing for bankruptcy. This fee is a cost that cannot be waived. However, in certain circumstances the court may decide to allow these fees to be paid in installments by the debtor.
The total cost of filing bankruptcy is hard to predict since most lawyers want to meet and discuss your individual case before giving you a price estimate. But from recent research it seems the average attorney's fee for filing Chapter 7 bankruptcy is in the ballpark of $2,000.
Again, depending on the complexity of the case and the area in which you are filing, it could be more or less. Filing for Chapter 13 seems to be slightly more because there is more paperwork involved.
This is a huge investment especially if you are already in financial strains so make sure to do your research and ensure the cost of filing bankruptcy is worth it given your individual situation.
Dean Shainin offers free online Bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit now at "How To Review the: Cost Of Filing Bankruptcy - Click Here
Article Source: http://EzineArticles.com/?expert=Dean_Shainin
No comments:
Post a Comment